FAC Explorer

Finding 9671 (2023-001)

Material Weakness
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-01-24
Audit: 13421
Organization: Bedford Public Schools (MI)
Auditor: Rehmann Robson LLC

AI Summary

  • Core Issue: The District failed to include required prevailing wage provisions in a construction contract funded by federal assistance.
  • Impacted Requirements: Noncompliance with the Uniform Guidance regarding wage rates and lack of certified payroll documentation.
  • Recommended Follow-Up: Review and update policies to ensure compliance with prevailing wage requirements and obtain certified payrolls for all relevant contracts.

Finding Text

2023-001 – Special Tests and Provisions – Wage Rate Requirementss Finding Type. Material Noncompliance; Material Weakness in Internal Controls over Compliance. Federal program(s) U.S. Department of Education - COVID-19 - Education Stabilization Fund (ALN 84.425D and 84.425U); Passed through the Michigan Department of Education; All project numbers. Criteria. The Uniform Guidance requires that all laborers and mechanics employed by contractors to work on minor remodeling, renovation or construction contracts in excess of $2,000 financed by federal assistance funds be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their construction contracts subject to the wage rate requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations, which include a requirement to obtain weekly certified payrolls from contractors. Condition. The one contract selected for testing that was subject to the wage rate requirements did not include the required provision and the District did not obtain the required certified payrolls.. Cause. The District does not have the proper internal controls in place to ensure that all contracts awarded have complied with federal requirements. Effect. The District did not follow federal requirements to include the prevailing wage rate provision in its contract. Questioned Costs. The total charges that were not supported by allowable documentation amounted to $119,700. Recommendation. We recommend that the District reviews its policies to ensure that applicable prevailing wage requirements are included in construction contracts whenever federal funds are used and certified payrolls are obtained. View of Responsible Officials. District officials will ensure that construction contracts contain these requirements during the bid process. Responsible Official. Executive Director of Business Services Estimated Completion Date. June 30, 2024

Corrective Action Plan

CORRECTIVE ACTION PLAN Pursuant to Federal Regulations, Uniform Administrative Requirements Section 200.511, the following are the findings as noted in Bedford Public Schools’ Single Audit report for the year ended June 30, 2023, and corrective actions to be completed. Finding: 2023-001 – Special Tests and Provisions – Wage Rate Requirements U.S. Department of Education – COVID-19 - Education Stabilization Fund (ALN 84.425D and 84.425U); Passed through the Michigan Department of Education; All project numbers. Auditor Description of Condition and Effect: The one contract selected for testing that was subject to the wage rate requirements did not include the required provision and the District did not obtain the required certified payrolls. The District did not follow federal requirements to include the prevailing wage rate provision in its contract. Auditor Recommendation: We recommend that the District reviews its policies to ensure that applicable prevailing wage requirements are included in construction contracts whenever federal funds are used and certified payrolls are obtained. Corrective Action: District officials will ensure that construction contracts contain these requirements during the bid process. Responsible Person: Chrissie Bruckner, Executive Director of Business Services Anticipated Completion Date: June 30, 2024

Categories

Questioned Costs Special Tests & Provisions Procurement, Suspension & Debarment Material Weakness Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 9672 2023-001
    Material Weakness
  • 9673 2023-001
    Material Weakness
  • 9674 2023-001
    Material Weakness
  • 586113 2023-001
    Material Weakness
  • 586114 2023-001
    Material Weakness
  • 586115 2023-001
    Material Weakness
  • 586116 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $529,002
84.425 Education Stabilization Fund $430,212
84.010 Title I Grants to Local Educational Agencies $136,728
84.367 Improving Teacher Quality State Grants $117,488
10.553 School Breakfast Program $90,448
84.002 Adult Education - Basic Grants to States $41,487
84.048 Career and Technical Education -- Basic Grants to States $39,842
10.185 Local Food for Schools $17,396
84.424 Student Support and Academic Enrichment Program $16,890
93.778 Medical Assistance Program $12,489
84.196 Education for Homeless Children and Youth $11,693
84.365 English Language Acquisition State Grants $7,647
10.649 Pandemic Ebt Administrative Costs $3,135
10.558 Child and Adult Care Food Program $2,463